Pom Wonderful LLC v. Coca-Cola Co.
Pom Wonderful LLC v. Coca-Cola Co.
2009 WL 10655335 (C.D. Cal. 2009)
November 30, 2009
Olguin, Fernando M., United States Magistrate Judge
Summary
The court granted the Plaintiff's Motion to Compel Production of Missing Email Attachments and Valuation Documents in part and denied it in part. The Defendant was ordered to either provide the Plaintiff with the information, data, or software needed to re-link the 138 emails with their attachments, or to produce the emails with their corresponding attachments. The court also noted the importance of ESI, such as emails and their attachments, and the Sedona Conference's definition of a "document" or "document family" and a "message unit".
Additional Decisions
Pom Wonderful LLC, a Delaware limited liability company, Plaintiff,
v.
The Coca-Cola Company, a Delaware corporation; and Does 1-10, inclusive, Defendants
v.
The Coca-Cola Company, a Delaware corporation; and Does 1-10, inclusive, Defendants
NO. CV 08-6237 SJO (FMOx)
United States District Court, C.D. California
Filed November 30, 2009
Counsel
Andrew Steven Clare, David Aaron Grossman, Walter Allan Edmiston, Loeb and Loeb LLP, Daniel A. Beck, Adam P. Zaffos, Brooke S. Hammond, Kristina M. Diaz, Matthew David Moran, Roll Law Group PC, Los Angeles, CA, LLL Forrest Arthur Hainline, Goodwin Procter LLP, San Francisco, CA, for Plaintiff.Jeffrey A. Rosenfeld, Rachel E. K. Lowe, Sean R. Crain, DLA Piper LLP, Dawn M. Coulson, Epps and Coulson LLP, Los Angeles, CA, Sarah E. Zgliniec, Steven A. Zalesin, Travis J. Tu, Jackson Taylor Kirklin, Joshua A. Kipnees, Rachel B. Sherman, Kathrina J. Szymborski, Patterson Belknap Webb and Tyler LLP, New York, NY, Shani Thome, for Defendants.
The Coca-Cola Company, Atlanta, GA, pro se.
Olguin, Fernando M., United States Magistrate Judge
ORDER Re: DISCOVERY MOTION
*1
The court has reviewed and considered all the briefing filed with
respect to plaintiff's Motion to Compel Production of: (1) Missing Email
Attachments and (2) Valuation Documents (“Motion” or “Joint Stip.”),
and concludes that oral argument is not necessary to resolve these
matters. See Fed. R. Civ. P. 78; Local Rule 7-15; Willis v. Pac. Mar. Ass'n, 244 F.3d 675, 684 n. 2 (9th Cir. 2001, as amended Mar. 27, 2001).
I. STANDARD OF REVIEW.
A party can discover any nonprivileged information which is relevant to the claims or defenses of any other party. Fed. R. Civ. P. 26(b)(1).
Relevant information does not have to be admissible so long as it
appears calculated to lead to the discovery of admissible evidence. Id.
“Relevancy is broadly construed, and a request for discovery should be
considered relevant ... to the claim or defense of any party. A request
for discovery should be allowed unless it is clear that the information
sought can have no possible bearing on the claim or defense of a party.”
McCormick v. City of Lawrence, Kansas, 2005 WL 1606595, *5 (D. Kan. 2005) (internal citations omitted); see also Surfvivor Media, Inc. v. Survivor Productions, 406 F.3d 625, 635 (9th Cir. 2005)
(“Litigants may obtain discovery regarding any matter, not privileged,
that is relevant to the claim or defense of any party. Relevant
information for purposes of discovery is information reasonably
calculated to lead to the discovery of admissible evidence.”) (internal
citations and quotation marks omitted). “The party who resists discovery
has the burden to show discovery should not be allowed, and has the
burden of clarifying, explaining, and supporting its objections.” Keith H. v. Long Beach Unified School District, 228 F.R.D. 652, 655-56 (C.D. Cal. 2005); see also Blankenship v. Hearst Corp., 519 F.2d 418, 429 (9th Cir. 1975)
(“Under the liberal discovery principles of the Federal Rules
defendants were required to carry a heavy burden of showing why
discovery was denied. They did not meet this burden.”); Cable & Computer Tech., Inc. v. Lockheed Saunders, Inc., 175 F.R.D. 646, 652 (C.D. Cal. 1997)
(“[T]his Court prefers to consider contention interrogatories in the
same manner it would consider any interrogatory, placing the burden on
the party opposing discovery rather than shifting the burden to the
proponent of the contention interrogatories to justify their
propoundment.”).
II. PRODUCTION OF EMAIL ATTACHMENTS.
There is no dispute that the email attachments for the 138 emails are relevant to the claims and/or defenses in this action. (See, generally,
Joint Stip. at 1-14). Defendant The Coca Cola Company (“defendant” or
“TCCC”) also does not dispute that the email attachments it produced do
not reference a distinguishing filename in their Concordance load file
or associated TIFF images. (See, generally,
Joint Stip. at 9-10 & 14-15; Defendant's Supplemental Memorandum in
Opposition to Motion to Compel Production of: (1) Missing Email
Attachments and (2) Valuation Documents (“Defendant's Supp. Mem.”) at
2-3). Finally, and most importantly, there is no dispute that plaintiff
has no way of re-linking the missing attachments to their parent emails.
(See, generally, Joint Stip. at 9-10; Defendant's Supp. Mem. at 2-3).
*2
Defendant refuses to produce the email attachments on two grounds.
First, defendant claims that it has no legal obligation to re-link the
emails and their attachments because it produced them in the usual
course of business.[1] (See
Joint Stip. at 13-14). The court is unpersuaded. The initial email that
contains the attachment constitutes one responsive “document” or
“document family,” i.e., a “message unit.”[2]
Similarly, any responsive or forwarding email that takes some action
with respect to the attachment constitutes another responsive document
or message unit. As such, plaintiff must have the ability to identify
which attachments belong to which emails. There is no dispute that
plaintiff does not have that ability. (See, generally, Joint Stip. at 9-10; Defendant's Supp. Mem. at 2-3).
In CP Solutions PTE, Ltd. v. General Electric Company, 2006 WL 1272615 (D. Conn. 2006),
plaintiff filed a motion to compel contending, among other things, that
defendants produced “thousands of emails [that] were separated from
their attachments[.]” Id. at *3.
Defendants responded that the emails were produced in a format where
plaintiff should have been able to sort the documents and determine the
email/attachment relationship. Id. The court granted that motion, stating as follows:
*3 [W]ith respect to the attachments to emails, Defendants state that they have already provided Plaintiff with the information needed to match the e-mails with their attachments. If that is not the case, Defendants, at their expense, are ordered to provide Plaintiff with the information, data, or software needed to accomplish this. Defendants chose to provide the documents in the manner in which they are kept in the ordinary course of business. Attachments should have been produced with their corresponding emails. The Court appreciates the fact that the attachments were created with different software programs, but does not provide Defendants with an excuse to produce the e-mails and attachments in a jumbled, disorganized fashion.
Id. at *4(italics in original). Here, plaintiff does not have the ability to re-link the emails and, unlike CP Solutions, is seeking the attachments for only 138 emails as opposed to “thousands of emails.” Id.
at *3. Further, given the Sedona Conference's view of an email and
attachment as one document or message unit, it is clear that TCCC is
required to provide plaintiff with either the ability to re-link the
emails with the attachments or re-produce the emails with their
attachments.
Second,
defendant asserts that it “has no method to automatically re-link
emails with their alleged ‘missing’ attachments[ ]” and that requiring
it to do so would “employ a tedious manual process.” (Joint Stip. at
14-15) (bold and capitalization omitted). Again, TCCC did not provide
any evidence or otherwise contend that the original emails with
attachments cannot be retrieved from its server. See also supra
at n. 1. Further, even assuming the email attachments were somehow not
retrievable from its servers, TCCC cannot seek to preclude plaintiff
from pursuing discovery based on a record-keeping system that is plainly
inadequate. See Wesley v. Muhammad, 2008 WL 4386871, at *5 (S.D.N.Y. 2008)
(rejecting defendants' assumption that “an institution may shield
itself from discovery by utilizing a system of recordkeeping which
conceals rather than discloses relevant records, or makes it unduly
difficult to identify or locate them, thus rendering the production of
documents an excessively burdensome and costly expenditure”) (internal
quotation marks and citation omitted); Nowak v. Lexington Ins. Co., 2006 WL 3613764, at *3 (S.D. Fla.), report and recommendation adopted by 2006 WL 3613762 (S.D. Fla. 2006)
(defendant cannot “argue undue burden and be free from discovery
obligations by retaining an outmoded filing system” that was “inadequate
for the information sought ... to be gathered in any manner except
manually going through each relevant file[ ]”); see also Kozlowski v. Sears Roebuck & Co., 73 F.R.D. 73, 76 (D. Mass. 1976) (“The defendant may not excuse itself from compliance with Rule 34, Fed.R.Civ.P.,
by utilizing a system of record-keeping which conceals rather than
discloses relevant records, or makes it unduly difficult to identify or
locate them, thus rendering the production of the documents an
excessively burdensome and costly expedition. To allow a defendant whose
business generates massive records to frustrate discovery by creating
an inadequate filing system, and then claiming undue burden, would
defeat the purposes of the discovery rules.”).
Finally,
to the extent defendant claims that producing the email attachments
would be unduly burdensome, the court is unpersuaded. It is
well-established that the burden is on the objecting party to show
grounds for failing to provide the requested discovery. See, e.g., Bible v. Rio Properties, Inc., 246 F.R.D. 614, 618 (C.D. Cal. 2007); Sullivan v. Prudential Ins. Co., 233 F.R.D. 573, 575 (C.D. Cal. 2005); Sherman Park Community Ass'n v. Wauwatosa Realty Co., 486 F.Supp. 838, 845 (E.D. Wis. 1980); Smith v. B & O R.R., 473 F.Supp. 572, 585 (D. Md. 1979); Laufman v. Oakley Bldg. & Loan Co., 72 F.R.D. 116, 121 (S.D. Ohio 1976).
The responding party cannot simply invoke generalized objections;
rather, with respect to each of the propounding party's discovery
requests, the responding party
*4 must show specifically how, despite the broad and liberal construction afforded the federal discovery rules, each [request] is ... overly broad, burdensome or oppressive by submitting affidavits or offering evidence revealing the nature of the burden.
Roesberg v. Johns-Manville Corp., 85 F.R.D. 292, 296-97 (E.D. Pa. 1980) (internal citations omitted); see also Wirtz v. Capitol Air Service, Inc., 42 F.R.D. 641, 643 (D. Kan. 1967).
In addition, a responding party must explain and/or establish the basis
for its objection at the time it asserts its objection. See Allianz Ins. Co., 2005 WL 44534, at *2.
Here,
other than stating, in a conclusory manner, that providing the email
attachments for 138 emails “would be very tedious,” (Declaration of
Brian A. Hightower in Support of Defendant's Opposition to Motion
(“Hightower Decl.”) at ¶ 9), TCCC did not provide any evidence
establishing the nature and costs of the burden and it does not appear
that any declarations were submitted with the discovery responses. See Roesberg, 85 F.R.D. at 296-97.
By not establishing the basis for its burdensomeness objection at the
time TCCC asserted its objection, plaintiff was denied the opportunity
to challenge defendant's objection. Similarly, even assuming it was
proper for the TCCC to attempt to establish burden in the context of the
Joint Stip., defendant's assertion that producing the email attachments
“would be very tedious,” (Hightower Decl. at ¶ 9; see also
Joint Stip. at 15), is conclusory and lacks substantiation. In short,
defendant's generalized objection of burdensomeness is insufficient. See Kansas-Nebraska Natural Gas Co. v. Marathon Oil Co., 109 F.R.D. 12, 24 (D. Neb. 1985) (party objecting to production requests must specify why the requests are objectionable); Roesberg, 85 F.R.D. at 296-97.
Finally, even if TCCC could make a showing of burdensomeness with
respect to the production of the email attachments, the “fact that
production of documents would be burdensome and ... would hamper the
party's business operations may not be a reason for refusing to order
production of relevant documents[.]”[3]7 Moore's Federal Practice, ¶ 34.14[3], at 34-87 (3d ed. 2009); see also Kozlowski, 73 F.R.D. at 76.
III. PURCHASE AND VALUATION DOCUMENTS.
Under
the circumstances, the court is persuaded that defendant met its burden
of showing why the discovery is not relevant to plaintiff's damages
claim. (See Joint Stip. at 18-20; Defendant's Supp. Mem. at 3-4); see also Blankenship, 519 F.2d at 419
(“Under the liberal discovery principles of the Federal Rules
defendants were required to carry a heavy burden of showing why
discovery was denied.”). Other than citing cases that set forth general
damages principles under the applicable statutes, plaintiff has not set
forth any cases to support the proposition that defendant's valuations
of third-party juice companies—many of whom concern “other juice product
lines,” (Joint Stip. at 17) (underline omitted)—are relevant to
plaintiff's lost profits or defendant's increased profits as a result of
the alleged misrepresentation relating to the subject juice product
line. (See, generally,
Joint Stip. at 16-18; Plaintiff's Supplemental Brief in Support of
Motion to Compel Production of: (1) Missing Email Attachments and (2)
Valuation Documents at 3-5).
*5 This
Order is not intended for publication. Nor is it intended to be
included or submitted to any online service such as Westlaw or Lexis.
Based on the foregoing, IT IS ORDERED THAT:
1. Plaintiff's Motion to Compel Production of: (1) Missing Email Attachments and (2) Valuation Documents (Document No. 107), is granted in part and denied in part as set forth above.
2. No later than December 9, 2009,[4]
defendant shall either: (a) provide plaintiff with the information,
data, or software needed to re-link the 138 emails with their
attachments; or (2) produce the emails with their corresponding
attachments.
3.
The parties are hereby advised that, absent a stay of this Order by
this court or the District Judge, they must comply with all of its
provisions, i.e., the filing of a
motion for review of this court's decision is not sufficient to suspend a
party's obligations to comply with the court's order. See
Local Rule 72-2.2 (“Regardless of whether a motion for review has been
filed, the Magistrate Judge's ruling remains in effect unless the ruling
is stayed or modified by the Magistrate Judge or the District Judge.”);
Tinsley v. Kemp, 750 F.Supp. 1001, 1013 (W.D. Mo. 1990)
(“[B]y refusing to comply with discovery merely because a motion to
stay is pending, a party effectively is granting its own motion to
stay—even before the court has ruled. Such a phenomenon would reduce a
court's orders to useless and senseless formalities.”). A magistrate
judge's decisions “should not be considered ineffective, advisory, or
nonfinal simply because they may be reviewed by the district court.” Kimbrell v. ADIA, S.A., 834 F.Supp. 1313, 1317 (D. Kan. 1993).
“Decisions by a magistrate judge on nondispositive motions are intended
to be effective unless overturned by the district judge, just as
decisions of a district judge are intended to be effective unless
overturned by a circuit court.” Id.
Footnotes
TCCC
does not deny or state that the emails on its computer system are
deleted from its servers at any given time. Nor does TCCC state that its
email filing system is incoherent or obsolete, thereby making the
emails inaccessible. All TCCC contends is that re-linking the
attachments to the emails would “employ a tedious manual process.”
(Joint Stip. at 15). Defendant's contention relating to the “tedious
manual process” is addressed below. All other objections are deemed
abandoned. See Cotracom Commodity Trading Co. v. Seaboard Corp., 189 F.R.D. 655, 662 (D. Kan. 1999)
(“When ruling upon a motion to compel, the court generally considers
those objections which have been timely asserted and relied upon in
response to the motion. It generally deems objections initially raised
but not relied upon in response to the motion as abandoned.”). Further,
any belated declarations or arguments the parties may seek to present to
the District Judge in the first instance may be found to have been
waived. See 14 Moore's Federal Practice
§ 72.11[1][a], at 72-52 (3d ed. 2009) (“A party's failure to present
timely arguments, case law, or evidentiary materials to a magistrate
judge prior to the magistrate's ruling, thereby depriving the magistrate
of the opportunity to rectify any alleged errors, waives that party's
right to present those arguments or materials to the district court on
appeal from the magistrate's nondispositive order.”); Seven For All Mankind, LLC v. GenX Clothing, Inc., 2006 WL 5720346, at *3 (C.D. Cal. 2006)
(“The district judge will normally not consider arguments, case law, or
evidentiary material which could have been, but was not, presented to
the magistrate judge in the first instance.”) (internal quotation marks
and citation omitted).
A
“document” or “document family” is “[a] collection of pages or files
produced manually or by a software application, constituting a logical
single communication of information, but consisting of more than a
single stand-alone record. Examples include a fax cover, the faxed
letter, and an attachment to the letter—the fax cover being the
‘Parent,’ and the letter and attachment being a ‘Child.’ ” Sedona Conference Glossary: Commonly Used Terms for E-Discovery and Digital Information Management (2d ed. Dec. 2007). A “message unit” is “[a]n email and any attachments that are associated with the email.” Id.
The Sedona Conference is a non-profit legal policy research and
educational organization which sponsors Working Groups on cutting-edge
issues of law. The Working Group on Electronic Document Production is
comprised of judges, attorneys, and technologists experienced in
electronic discovery and document management issues. Pace v. International Mill Service, Inc., 2007 WL 1385385, *2 (N.D. Ind. 2007).
Accordingly, defendant shall bear the costs of reviewing and gathering the documents.
Although
the court would ordinarily provide more than nine days to comply with a
discovery order, the District Judge's Initial Standing Order provides
that “[a]ll expert / non-expert discovery must be completed
by the discovery cut-off set by the Court.” (Court's Order of September
24, 2008, at ¶ 17.a.) (bold in original). This court has no authority
to allow discovery to continue beyond the December 9, 2009, cutoff.